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Overview: EJMCount The EJM Costing & Accounting system has all the features of a comprehensive accounting system but with a strong costing component. Cost can be allotted on three levels namely Resource, Project and Cost centre. It also caters for the unique requirements of the construction industry namely subcontractors, orders, certificate and retention. The actual costs from the various sub systems is then compared to the allowable costs generated in EJMProject in the Variance Report. This enables the user to take action as soon as unacceptable variances occur during the execution of the project. The module complies with the latest accounting standards such as IAS and IFRS. Structure of the Chart of Accounts It is a three-tier structure of which the first level consists of:

The major level determines the functionality of what follows

Under every major level there can be up to 99 sub categories.

Every subcategory can have an unlimited number of accounts 1 BANK

0101 Current Accounts

Bank Bank Pcash Petty cash 3 DEBTORS

0301 Trade debtors

P&PH Pick & Pay Holdings Ltd 0302 Debtor accrual, ret.

DebrAcr Debtors accrual P&Pret Retention P&P 5 FIXED ASSETS

0501 Fixed assets at cost

0501001 Construction equipment 0501002 Office furniture and fittings 0502 Depreciation of fixed assets

0502001 Depreciation - construction equipment 0502002 Depreciation - office fittings 9 CREDITORS

0901 Trade creditors

AlCty ALUMINIUM CITY (PTY) LTD BUCH BUCHEL HARDWARE 10 SUBCONTRACTORS

1001 Subcontractors

Acme Acme Earthworks Costa Costa Bricklayers 1002 Retention Subcontractors

RetAcme Retention Acme RetCost Retention Costa

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Resource library At the heart of the costing system is a three-tier resource library. In EJMProject, the allowable and progress are recorded. This will calculate the allowable (money and quantity) In EJMCount with the interlinked EJMPay and EJM Tool & Equipment, the resources used (quantity and amount) are recorded. From this the variances are calculated.

Code Description Unit Rate

2A PLANT / MAJOR 250CFM COMPRESSOR 250CFM(D) MTH 10 000.00 Bomag Bomag roller 212 hr 210.00 Cat320 Cat 320 excavator hr 350.00

3A LABOUR / UNSKILLD LeaderConc GANG LEADER-CONCRETE HR 20.56 LeaderExc GANG LEADER-EXC/FILL HR 20.56 LeaderFmwk GANG LEAD-FMWK-HORIZ HR 20.56 WorkerBrick GEN WRKR-BRICKWORK HR 12.57

3B LABOUR / SKILLED ArtisanCeil ARTISAN-CEILINGS HR 53.08 ArtisanFwk ARTISAN-FMWK-VERTI HR 53.08 ArtisanRoof ARTISAN-ROOFING HR 53.08

4C MATERIAL / CONCRETE 19mmStone 19mm Stone M3 250.00 20MPA_RM 20MPA READYMIX-OPC M3 734.58 CrushSand Crusher sand M3 180.00 FillSand Filler sand M3 90.00 25MPA_RM 25MPA Ready mix concrete M3 900.00

4E MATERIAL / FWK/REIN F3Sundry F3 SUNDRY FORMWORK M2 60.00 Ferrule ASB. FERRULE TUBE M 8.00 GUM TRIM GUM BEARERS M 35.00 MouldOil MOULD RELEASE OIL 210 2 500.00 Nail100 100MM WIRE NAILS KG 30.00

4H MATERIAL / BRICKWK BuildSand BUILDING SAND M3 110.00 StockBrick STOCK BRICKS 000 800.00 StockHard HARD BURNT STOCK BKS 000 900.00 WallTie 3MM CRIMPED WALL TIE 20 8.87

5A SUBCONTR / LAB ONLY S-Brick STOCK BRICKWK-LABOUR 000 1 400.00 S-ClearSite CLEAR SITE M2 2.10 S-Exc1 EXCAVATE BULK 0-2MDP M3 50.00

5B SUBCONTR / DOM S/C Roof Roof complete per sub contract sum 75 000.00 S-20HTS HTS 20MM (SCBD&FIX) TON 9 000.00 Cost Centre This is used to group similar costs together. In a building environment, in could be the various trades.

Code Description Unit Number

BFILL Backfilling m3 15 BWORK Brickwork M2 80 CARP Carpenter and Joiner 90 CEIL Ceilings m2 100 CONC Concrete m3 20 CONT Contingencies 160 DEM Demolitions m3 18 DOMS Dom. Sub-Contr. 140 DRAIN Drainage m 45 ELEC Electrical 135 EXC Excavation m3 10 FRM Formwork m2 30

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Suppliers (Creditors and Subcontractors)

Orders From EJMProject, one can create a buying list. This determines the maximum quantity and rate of what can be ordered. This order allowable can be amended from EJMProject (e.g. should a variation order e raised) or from EJMProject with those that have been granted the right.

This report shows the allowable, based on the estimate (from EJMProject) what has been ordered and balance remaining.

Orders can only be placed at the balance remaining at rates equal to or lower than has been allowed.

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Order status report

Subcontractors EJM assist you with the management of subcontractors:

Progress reports assist you with the tracking of work done. It could be either cumulative, amount per period or the quantity per period.

Subcontractor certificates are reports of their progress, the amount of money due to them and the retention raised against the contractor.

EJM has functions to assist you with the SARS requirements in regarding of subcontractors and tax. Allowables from EJMProject. From EJMProject, create a list of resources (rates and quantities) that is drawn down tfrom to create subcontractor payment certificates. This list can be modified through EJMProject (e.g. as a result of a Variation Order) or in EJMCount by someone that has been granted the right.

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Pay suppliers

Mark off the invoices you want to pay, discount and amounts to be retained.

Creditor Subcontractors invoices marked for payment

System: 1 My Company

All transaction upto 2015/01/25 For account ABECO to: Wats

Account Date Description Reference Amount Retain Discount Payable DueDate

BUCH BUCHEL HARDWARE BUCH Cheque: 1 1 2015/01/15 Material for b01 89 775.00 0.00 2 244.38 87 530.62 2015/01/25 BUCH BUCHEL HARDWARE 89 775.00 0.00 2 244.38 87 530.62

Costa Costa Bricklayers Costa Cheque: 2 11 2015/01/20 Labour only 1 50 836.50 0.00 0.00 50 836.50 2015/01/25 Costa Costa Bricklayers 50 836.50 0.00 0.00 50 836.50

JJMar J J MARITZ & SON (PTY) LTD JJMar Cheque: 3 3 2015/01/29 Material for jjm02 5 130.00 0.00 128.25 5 001.75 2015/01/25 JJMar J J MARITZ & SON (PTY) 5 130.00 0.00 128.25 5 001.75

Stomesh Stomesh Stomesh Cheque: 4 12 2015/01/29 Subby supply 2 2 244.38 500.00 0.00 1 744.38 2015/01/25 Stomesh Stomesh 2 244.38 500.00 0.00 1 744.38

Total 147 985.88 500.00 2 372.63 145 113.25

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Clients (debtors)

With EJM we help you manage your debtors with all the special requirements of the construction industry.

Tax invoices can be generated for services rendered on the projects, as well as stock invoices for stock sold.

It provides for Credit Notes

Through the Provisional Claims system, you only become liable for VAT once final payment has been approved

Monitor your receipts through the Age Analysis

Certificate If the Certificate and cover page were done in EJMProject, the certificate would have been created in EJMCount

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Financial Statements

Financial statements can be drawn from year to date as well as for a selected period. EJM is an accounting yearend rollover, meaning the user can request multiple year reporting. Trial balances can be drawn with differing degrees of detail. You can have a complete Trail balance with all

balances or a compact one with major and sub categories.

Trial Balance - My Company

Main Sub Account Year to Date: 2015/02 Februarie 2015

Debit Credit Debit Credit

1 BANK 17 286.75 Bank Bank 17 286.75

3 DEBTORS 451 236.25 403 118.48 0301 Trade debtors 393 399.99 367 317.55 P&PH Pick & Pay Holdings Ltd 393 399.99 367 317.55 0302 Debtor accrual, retention. 57 836.26 35 800.93 P&Pret Retention P&P 57 836.26 35 800.93

9 CREDITORS 195 453.00 135 603.00 AUST AUSTEN SERVICES (PTY) LTD 68 400.00 68 400.00 BUCH BUCHEL HARDWARE 13 566.00 13 566.00 JJMar J J MARITZ & SON (PTY) LTD 5 985.00 5 985.00 Lafar LAFARGE SA (PTY) LTD 107 502.00 47 652.00

10 SUBCONTRACTORS 62 553.70 56 328.70 1001 Subcontractors 56 828.70 56 328.70 Costa Costa Bricklayers 48 920.57 48 920.57 Stomesh Stomesh 7 908.13 7 408.13 1002 Retention Subcontractors 5 725.00 RetCost Retention Costa 5 500.00 RetStom Retention Stomesh 225.00

11 CURRENT LIABILITY 63 900.80 41 497.53 1101 VAT 23 456.79 21 611.53 VatIn Input VAT 49 708.27 23 497.64 VatOut Output VAT 73 165.06 45 109.17 1102 Payroll 40 444.01 19 886.00 AccrLP Accrued leave pay 1 593.04 802.03 NetPay Net pay 25 769.70 12 973.95 PAYE PAYE 9 248.40 4 298.40 Skills Skills 1 185.14 560.89 UIF UIF 2 370.28 1 121.78 WCA WCA 277.45 128.95

25 PROJECT REVENUE 578 362.57 358 009.31 PrjRev Project revenue 578 362.57 358 009.31

26 OTHER REVENUE 69 826.25 168.75 DiscRec Discount received 2 306.25 168.75 T&Erev Internal hire: Tool & Equipment 67 520.00

33 PROJECT EXPENSE 501 573.32 188 488.81 PrjExp Project expense 501 573.32 188 488.81

TOTAL 1 019 805 1 019 805 615 105 615 105

Income Statement - My Company Year to Date: 2015/02 Februarie 2015

Revenue

25 PROJECT REVENUE 578 362.57 358 009.31

26 OTHER REVENUE 69 826.25 168.75 DiscRec Discount received 2 306.25 168.75 T&Erev Internal hire: Tool & Equipment 67 520.00 0.00 Total Revenue 648 188.82 358 178.06

Expense

33 PROJECT EXPENSE 501 573.32 188 488.81

Total Expense 501 573.32 188 488.81

Profit 146 615.50 169 689.25

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Balance Sheet: Februarie 2015 My Company

Capital Employed

Equity 41 Profit (Loss) 146 615.50 4101 Profit & Loss 146 615.50

Total Equity 146 615.50

Total Capital Employed 146 615.50

Employment of Capital

Current Assets and Liabilities 1 BANK 17 286.75 0101 Current Accounts 17 286.75 3 DEBTORS 451 236.25 0301 Trade debtors 393 399.99 0302 Debtor accrual, ret. 57 836.26 9 CREDITORS 195 453.00 0901 Trade creditors 195 453.00 10 SUBCONTRACTORS 62 553.70 1001 Subcontractors 56 828.70 1002 Retention Subcontractors 5 725.00 11 CURRENT LIABILITY 63 900.80 1101 VAT 23 456.79 1102 Payroll 40 444.01

Total Current Assets and Liabilities 146 615.50

Total Employment of Capital 146 615.50

Key ratios: Own Capital Ratio: Nett worth/ Assets (norm>.5) 146 616 / 468 523 = 0.313

Acid Test: Current assets/ Current liabilities (norm>1) 468 523 / 321 908 = 1.455

Leverage: Liability / Nett worth (norm<1) 321 908 / 146 616 = 2.196

Trading ratio: Trade assets / Trade liability (norm>2) 468 523 / 321 908 = 1.455 Capital ratio: Assets / Liability (norm>2) 468 523 / 321 908 = 1.455

Movements per period

Cumulative ledger balances

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Costing reports

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Current, YTD, LTD Resource Summary/ Project My Company Selected for period 2 01 Februarie 2015 to 28 Februarie 2015

Current Year to date Life to date 0001 Warehouse 1 250CFM COMPRESSOR 250CFM(D) 5 000 5 000 Cat320 Cat 320 excavator 13 720 13 720 Cat910 Cat 910 loader 11 600 11 600 Gallion Gallion grader 8 450 8 450 Tipper Tipper 5M3 (wet) 28 750 28 750 2A MAJOR 67 520 67 520 Diesel DIESEL 17 500 17 500 2G FUEL 17 500 17 500 LeaderConc GANG LEADER-CONCRETE 2 626 2 626 LeaderExc GANG LEADER-EXC/FILL 4 730 4 730 WorkerCo GENERAL WORKER-CONCR 2 919 19 268 19 268 WorkerExc GEN WORKER-EXC/FILL 2 919 12 508 12 508 3A UNSKILLD 5 838 39 133 39 133 20MPA_R 20MPA READYMIX-OPC 23 800 49 300 49 300 25MPA_R 25MPA Ready mix 18 000 45 000 45 000 4C CONCRETE 41 800 94 300 94 300 BuildSand BUILDING SAND 5 250 9 750 9 750 OPCPocket OPC CEMENT-POCKETS 11 900 24 650 24 650 StockBrick STOCK BRICKS 66 000 66 000 4H BRICKWK 17 150 100 400 100 400 S-Brick STOCK BRICKWK-LABOUR 37 370 83 360 83 360 S-Plast LO PLAST-VERT/BRKWK 11 250 21 250 21 250 5A LAB ONLY 48 620 104 610 104 610 Roof Roof complete per sub 60 000 60 000 60 000 S-20HTS HTS 20MM (SCBD&FIX) 6 750 9 000 9 000 5B DOM S/C 66 750 69 000 69 000 Total 0001 Warehouse 1 180 158 492 462 492 462

Detail cost reports

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Synopsis per project per cost centre per resource

Resource Synopsis per Project

Unit Quantity Rate Amount

0001 Warehouse 1

2A PLANT ON JOBS 250CFM COMPRESSOR 250CFM(D) MTH 1.000 5000.00 5 000.00 CAT320 Cat 320 excavator hr 35.000 392.00 13 720.00 CAT910 Cat 910 loader hr 40.000 290.00 11 600.00 GALLION Gallion grader hr 13.000 650.00 8 450.00 TIPPER Tipper 5M3 (wet) hr 125.000 230.00 28 750.00 Diesel DIESEL LIT 1500.000 11.67 17 500.00 Total for 2 PLANT ON JOBS 1714.00 85 020.00

3A LABOUR LeaderCon GANG LEADER-CONCRETE HR 130.000 20.20 2 625.60 LeaderExc GANG LEADER-EXC/FILL HR 170.000 27.83 4 730.25 WorkerCo GENERAL WORKER-CONCR HR 1150.000 16.76 19 268.48 WorkerEx GEN WORKER-EXC/FILL HR 760.000 16.46 12 508.48 Total for 3 LABOUR 2210.00 39 132.81

4C MATERIAL 20MPA_RM 20MPA READYMIX-OPC M3 58.000 850.00 49 300.00 25MPA_RM 25MPA Ready mix concrete M3 50.000 900.00 45 000.00 BuildSand BUILDING SAND M3 65.000 150.00 9 750.00 OPCPocke OPC CEMENT-POCKETS PCT 290.000 85.00 24 650.00 StockBrick STOCK BRICKS 000 55.000 1200.00 66 000.00 Total for 4 MATERIAL 518.00 194 700.00

5A SUBCONTR S-Brick STOCK BRICKWK-LABOUR 000 55.000 1515.63 83 359.68 S-Plast LO PLAST-VERT/BRKWK M2 850.000 25.00 21 250.00 Roof Roof complete per sub contract sum 1.000 60000.00 60 000.00 S-20HTS HTS 20MM (SCBD&FIX) TON 1.000 9000.00 9 000.00 Total for 5 SUBCONTR 907.00 173 609.68

Total for Project 0001 Warehouse 1 5349.0 492 462.49